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Gulf Insider
5 days ago
- Business
- Gulf Insider
GCC Asset Management Soars 9% to $2.2tn
The GCC's asset management industry surged to $2.2tn in Assets under Management (AuM) in 2024, marking a 9 per cent year-on-year increase, according to Boston Consulting Group's (BCG) latest Global Asset Management report. Saudi Arabia and the UAE were the key growth engines in the retail mutual fund sector, while Kuwait and Abu Dhabi's sovereign wealth funds (SWFs) managed the largest asset volumes in the region. Lukasz Rey, Managing Director and Partner and Middle East Head of Financial Institutions at BCG, said: 'The next decade's leaders will be those who redefine their future, not just endure challenges. The region's 9 per cent AuM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital. 'With Saudi Arabia and the UAE anchoring regional momentum, the GCC's strategic diversification and SWF dominance signal a future where local asset managers could rival global giants. 'Recent market volatility offers a chance for change, prompting asset managers to move from recovery to innovation – reimagining value delivery, client engagement, and business operations.' BCG's findings show that revenue growth in 2024 was driven primarily by market performance rather than fresh inflows, leaving the sector exposed to global volatility. Fee compression, shifting investor preferences, and rapid digital disruption are now pushing firms to overhaul business models, cut costs, and adopt technology-led strategies. The report identifies three forces transforming the global and regional asset management industry: Product innovation and retail access to private assets: Asset managers are targeting new opportunities in active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. A major growth area is retail access to private markets, where semi-liquid private asset funds have grown more than fivefold in four years to over $300bn Consolidation and digital transformation: Mergers, acquisitions, and strategic partnerships are accelerating as firms scale operations and invest in technology. Managers with more than $300bn in AuM are leveraging efficiencies, while smaller players are adopting leaner operating models Cost discipline and AI adoption: Generative AI is being deployed across the front, middle, and back offices, streamlining processes and enabling more efficient management of complex asset classes like alternatives and illiquids Mohammad Khan, Managing Director and Partner at BCG, said: 'The GCC's asset management industry has demonstrated remarkable resilience and strategic growth, achieving $2.2tn in Assets Under Management (AuM) in 2024. 'With Saudi Arabia and the UAE driving retail mutual fund expansion and Kuwait and Abu Dhabi leading in sovereign wealth fund dominance, the region is steadily establishing itself as a global financial powerhouse. 'As highlighted in BCG's research, this growth reflects not only recovery but a strategic pivot towards innovation and operational excellence. 'The next decade will be defined by asset managers who prioritise client-centric transformation, technological advancement, and leaner business models, positioning the GCC as a formidable force capable of rivalling global industry leaders.' Nabil Saadallah, Managing Director and Partner at BCG, said: 'While currency adjustments and methodology revisions cloud historical comparisons, the consistency of 9 per cent annual growth across the region and GCC reveals a resilient market. 'Pension funds and SWFs, led by Saudi and Kuwaiti institutions, are quietly reshaping the region's financial architecture, blending tradition with global asset management rigor. 'Notably, cost discipline is now a strategic focus with firms prioritizing unique value creation, embracing lean practices, and investing heavily in transformative technologies.'Also read: Saudi Gaming Market Surges With 2.4m Consoles Imported Amid Esports Boom
Arabian Post
5 days ago
- Business
- Arabian Post
GCC's Asset-Management Sector Hits $2.2 Trillion
With market performance as the primary engine of that growth, rather than new investor inflows, the region remains somewhat exposed to fluctuations in global financial markets. Saudi Arabia and the UAE were the principal drivers behind retail mutual fund expansion, while the largest volumes of sovereign wealth fund assets were held in Kuwait and Abu Dhabi. Lukasz Rey, managing director and partner and Middle East head of financial institutions at BCG, commented that the 9 per cent growth underscores the GCC's emergence as a capital hub, and he emphasised that asset managers who embrace innovation rather than simply endure headwinds will lead into the next decade. Mohammad Khan, also managing director and partner at BCG, highlighted the region's resilience and strategic shift toward innovation and operational excellence, positioning GCC-based asset managers to contend with global giants. ADVERTISEMENT Despite the solid headline growth, the report flags persistent industry concerns: fee compression, shifting investor preferences—particularly a move toward passive products—and rapid digital disruption, all of which are forcing firms to rethink business models, accelerate digitisation and cost innovation, and hone strategic priorities. Globally, asset managers also enjoyed growth, with worldwide assets under management climbing to a record $128 trillion in 2024, a 12 per cent rise from the preceding year, as noted by BCG's Global Asset Management Report 2025. Market performance was responsible for approximately 70 per cent of the global revenue increase, underscoring the industry's sensitivity to external economic conditions. Within that broader context, the GCC's performance marks it as a region of growing strategic importance. Retail mutual funds in Saudi Arabia and the UAE are gaining ground, while sovereign wealth funds in Abu Dhabi and Kuwait remain among the region's largest institutional investors. For example, forecasts suggest that GCC sovereign wealth funds may collectively manage up to $7.3 trillion by 2030, a trend driven by increasing diversification and deployment of global capital.
Zawya
5 days ago
- Business
- Zawya
Saudi, UAE drive GCC assets under management growth to $2.2trln
The value of assets under management (AUM) across the Gulf Cooperation Council (GCC) region expanded by 9% to $2.2 trillion in 2024, according to Boston Consulting Group (BCG). The growth highlights that the region is becoming a global financial hub and that asset managers in the Gulf are poised to compete with big global players in the future, the consultancy firm said on Wednesday. Saudi Arabia and the UAE have been cited for driving the expansion of the retail mutual funds sector. Kuwait and Abu Dhabi have also taken the lead in the sovereign wealth fund space, according to the consultancy firm. "The region's 9% AUM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital," noted Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG. "With Saudi Arabia and the UAE anchoring regional momentum, the GCC's strategic diversification and SWF dominance signal a future where local asset managers could rival global giants." The kingdom's Public Investment Fund (PIF) said on Wednesday that its AUM jumped by 19% to $913 billion by the end of 2024, with an annual average total portfolio return of 7.2% since 2017. The Abu Dhabi Global Market (ADGM) had also reported a 215% increase in total AUM in the third quarter of 2024 compared to a year earlier. (Writing by Cleofe Maceda; editing by Brinda Darasha)
Qatar Tribune
6 days ago
- Business
- Qatar Tribune
GCC asset management industry reaches $2.2 trillion in 2024, registers 9% growth, says BCG report
Tribune News Network Doha The Gulf Cooperation Council (GCC) asset management sector reached $2.2 trillion in Assets under Management (AuM) in 2024, marking a 9 percent increase over the previous year, according to the 23rd edition of the Global Asset Management Report by Boston Consulting Group (BCG), titled 'From Recovery to Reinvention.' In the retail mutual fund sector, Saudi Arabia and the UAE have been the primary drivers of growth, while sovereign wealth funds in Abu Dhabi and Kuwait continue to manage the largest volumes of assets in the region. The report highlights that the revenue growth in 2024 was largely driven by market performance rather than investor inflows, underscoring the industry's vulnerability to external market forces. At the same time, persistent fee compression, shifting investor preferences, and digital disruption are prompting firms to rethink business models, innovate on costs, and sharpen their strategic focus. Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, observed, 'The next decade's leaders will be those who redefine their future, not just endure challenges. The GCC's 9% AuM growth in 2024 highlights its rising prominence as a hub for both institutional and retail capital. With Saudi Arabia and the UAE anchoring regional momentum and sovereign wealth funds dominating the market, local asset managers have the potential to compete with global giants. Recent market volatility provides an opportunity for change, encouraging asset managers to move from recovery to innovation and reimagine value delivery, client engagement, and business operations.' Mohammad Khan, Managing Director & Partner at BCG, added, 'The GCC's asset management industry has shown remarkable resilience and strategic growth, achieving $2.2 trillion in AuM in 2024. The expansion of retail mutual funds led by Saudi Arabia and the UAE, alongside the dominance of sovereign wealth funds in Kuwait and Abu Dhabi, underscores the region's growing influence as a global financial powerhouse. This growth reflects not just recovery, but a deliberate shift toward innovation and operational excellence. The next decade will reward asset managers who prioritise client-centric transformation, technological advancement, and leaner business models, positioning the GCC to rival global industry leaders.' The report also emphasises the evolving landscape of the region's asset management industry. Asset managers are increasingly seeking opportunities to develop new products that cater to changing investor demands, particularly in active exchange-traded funds, model portfolios, and separately managed accounts. The sector is also expanding access to private assets for retail clients, with semi-liquid private asset funds growing more than fivefold in four years to exceed $300 billion. This growth is fueled by strong demand for better risk-adjusted returns and long-term performance, though challenges remain in navigating regulatory requirements, simplifying product design, and enhancing investor education. In addition, strategic consolidation and digital transformation are reshaping the industry. Firms are pursuing partnerships and M&A to scale operations, broaden offerings, and strengthen technology capabilities. Large asset managers are leveraging technological synergies and operational efficiencies to reduce costs, while smaller firms are focusing on leaner models. Artificial intelligence, particularly generative AI, is emerging as a key driver in process automation, product delivery, and operational efficiency across front, middle, and back-office functions. Nabil Saadallah, Managing Director & Partner at BCG, concluded, 'Despite historical comparisons being affected by currency adjustments and methodology revisions, the GCC's consistent 9 percent annual growth demonstrates the sector's resilience. Pension funds and sovereign wealth funds in Saudi Arabia and Kuwait are quietly reshaping the region's financial architecture, blending tradition with global asset management rigor. Cost discipline, operational efficiency, and investment in transformative technologies are now central to delivering unique value.' The BCG report makes it clear that the GCC's asset management industry is not only recovering from past challenges but is strategically reinventing itself, positioning the region as a formidable hub capable of competing with global financial centers while fostering innovation, client-centric strategies, and operational excellence.
Gulf Today
6 days ago
- Business
- Gulf Today
GCC's assets under management reached $2.2tr in 2024, says report
The GCC's asset management industry grew to $2.2 trillion in Assets under Management (AuM) in 2024, a 9% increase from the previous year, according to the 23rd edition of the Global Asset Management report, titled 'From Recovery to Reinvention' by Boston Consulting Group (BCG). In the retail mutual fund sector, Saudi Arabia and the UAE have been the principal contributors to growth. As for sovereign wealth funds (SWFs), the largest volumes of assets have been managed by major players in Kuwait and Abu Dhabi. Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, said: 'The next decade's leaders will be those who redefine their future, not just endure challenges. The region's 9% AuM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital. With Saudi Arabia and the UAE anchoring regional momentum, the GCC's strategic diversification and SWF dominance signal a future where local asset managers could rival global giants. Recent market volatility offers a chance for change, prompting asset managers to move from recovery to innovation - reimagining value delivery, client engagement, and business operations.' According to the report, the revenue growth in 2024 was driven by market performance rather than investor inflows, underscoring the industry's vulnerability to external forces. Meanwhile, persistent fee compression, shifts in investor preferences, and digital disruption are pushing firms to redesign their business models, accelerate cost innovation, and sharpen their strategic focus. Mohammad Khan, Managing Director & Partner at BCG, said: 'The GCC's asset management industry has demonstrated remarkable resilience and strategic growth, achieving $2.2 trillion in Assets Under Management (AuM) in 2024. With Saudi Arabia and the UAE driving retail mutual fund expansion and Kuwait and Abu Dhabi leading in sovereign wealth fund dominance, the region is steadily establishing itself as a global financial powerhouse. As highlighted in BCG's research, this growth reflects not only recovery but a strategic pivot towards innovation and operational excellence. The next decade will be defined by asset managers who prioritize client-centric transformation, technological advancement, and leaner business models, positioning the GCC as a formidable force capable of rivaling global industry leaders.' The report highlights three forces reshaping the industry globally. Opportunities to Create New Products in Response to Changing Investor Demands: Looking forward, asset managers have two opportunities to win in an evolving product and distribution landscape. First, they can claim a larger portion of a shrinking but important pool of actively managed assets - specifically, in active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. Second, they can mobilize to play a key role in the growing market for delivering private assets to retail clients. Retail access to private markets is an expanding frontier, with semi-liquid private asset funds expanding over five times in four years, surpassing $300 billion. This growth is fueled by the demand for better risk-adjusted returns and solid long-term performance, though challenges include navigating regulatory barriers, simplifying product design, and enhancing investor education. Staff Reporter, Gulf Today Saudi Arabia and the UAE lead retail mutual fund growth, while Abu Dhabi and Kuwait's SWFs manage the largest volume of assets in the region
